Enter cost and selling price.
Finance Math Calculator
Profit Margin Calculator
Calculate gross profit, profit margin on revenue, markup on cost, and break-even relationship from cost and selling price.
Instant answer
Formula breakdown
Browser-based
Mobile friendly
Interactive calculator
Enter your values
Use the example values or replace them with your own. Required validation happens before the calculation.
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Calculated answer
Result
Simple workflow
How to use the Profit Margin Calculator
Follow these steps to get a reliable result and understand how it was produced.
Subtract cost to find profit or loss.
Divide by revenue for margin and by cost for markup.
Understanding the calculation
Margin and markup use different denominators, so their percentages are not interchangeable.
Profit = revenue−cost; margin = profit/revenue×100; markup = profit/cost×100The result panel substitutes your numbers into this relationship and shows the important intermediate values.
Common uses
- Product pricing
- Retail and freelance estimates
- Comparing margin with markup
Accuracy tips
- Margin uses selling price as the denominator.
- Markup uses cost as the denominator.
- Include all relevant costs for a realistic business estimate.
Helpful answers
Profit Margin Calculator FAQs
Important details about formulas, inputs, limitations, and result interpretation.
Why are margin and markup different?
They divide the same profit by different bases: revenue for margin and cost for markup.
Can the calculator show a loss?
Yes. If selling price is below cost, profit and percentages become negative.
What if cost is zero?
Markup is undefined because it would require division by zero.
Does this calculate net profit?
Only if the cost input includes every expense; otherwise it is closer to gross profit.